What Bankrate's car loan calculator does
Bankrate's car loan calculator takes three pieces of information — the car's price, your down payment, and the interest rate — and shows you what your monthly payment will be over a set loan term. You enter the numbers, and it does the math when ready. The calculator also breaks down how much of each payment goes toward interest versus principal, and shows your total interest paid over the life of the loan.
This is a math tool, not a rate-shopping tool. It does not connect you to lenders or tell you what rate you may have access to for. It shows you what different scenarios cost, so you can decide how much down payment makes sense or whether a longer loan term is worth the extra interest.
Key Takeaways
- Bankrate's calculator requires the car price, your down payment amount, the interest rate, and the loan term in months to calculate your monthly payment.
- The calculator shows both your monthly payment and the total interest you will pay, helping you compare different down payment or term scenarios.
- You need to know or estimate the interest rate before using the calculator — it does not look up rates for you.
- The result is an estimate only; your actual payment may differ slightly depending on taxes, fees, and how your lender structures the loan.
Where to find Bankrate's car loan calculator
Go to bankrate.com and search for "car loan calculator" in the search bar at the top of the page. The calculator appears under the Auto Loans section. You can also navigate through the site's main menu under Loans, then Auto Loans, then Tools.
The calculator is free and does not require you to create an account or enter your email address. You can use it as many times as you want to test different scenarios.
How to enter your information
The calculator has four main fields. Car price is the total amount you are financing — the sticker price minus any trade-in value. If you are buying a $28,000 car and trading in a vehicle worth $5,000, you would enter $23,000.
Down payment is the cash you are putting toward the purchase upfront. Enter this as a dollar amount, not a percentage. The calculator will show you the loan amount (car price minus down payment) automatically.
Interest rate is where you need to do some homework first. This is the annual percentage rate, or APR, that a lender would charge you. You can get rate estimates from your bank, credit union, or online lenders before you use the calculator. If you do not know your rate yet, try entering a few different rates to see how sensitive your payment is to rate changes.
Loan term is how many months you want to borrow for. Common terms are 36, 48, 60, or 72 months. Shorter terms mean higher monthly payments but less total interest. Longer terms spread the cost out but cost more overall.
Reading the results
Once you enter all four fields, the calculator shows your estimated monthly payment at the top. Below that, you will see a breakdown: the total amount you will pay over the life of the loan, and how much of that is interest.
For example, if you borrow $20,000 at 6% for 60 months, your monthly payment might be around $387, and you would pay roughly $3,200 in interest over five years. If you stretch that same loan to 72 months, your payment drops to around $330 per month, but you pay closer to $3,800 in interest total.
Some versions of the calculator also show an amortization schedule — a month-by-month breakdown of how much principal and interest you pay each month. This helps you see how the balance shrinks over time.
Why the interest rate matters most
Small changes in interest rate create surprisingly large changes in what you pay. A loan at 4% costs significantly less than the same loan at 7%, even though the difference sounds small. This is why shopping around for rates before you buy is worth your time.
Your actual rate depends on your credit score, the age and mileage of the car, the size of your down payment, and the lender you choose. Banks, credit unions, and online lenders often offer different rates. Some lenders offer better rates if you have direct deposit or an existing account with them.
Limitations of the calculator
The calculator shows the loan payment only — it does not include taxes, registration fees, insurance, or maintenance. These costs are real and significant. A $25,000 car loan might have a $450 monthly payment, but your total monthly cost (including insurance and gas) could be $600 or more.
The calculator also assumes you make every payment on time and do not pay extra toward principal. If you plan to pay down the loan faster, your total interest will be lower than the calculator shows.
Finally, the result is an estimate. Your actual payment may vary by a few dollars depending on how your lender calculates interest, whether they charge origination fees, and whether your state adds sales tax to the financed amount.
How to use the calculator to make a decision
Run the calculator several times with different down payment amounts. See how putting down $3,000 instead of $1,000 changes your monthly payment and total interest. Often a modest increase in down payment saves you hundreds in interest.
Then run it with different loan terms. Compare a 48-month loan to a 60-month loan at the same rate. Decide whether the lower monthly payment is worth the extra interest cost.
Finally, run it with different interest rates. If you are not sure what rate you will get, try 4%, 6%, and 8% to see the range. This shows you how much rate shopping matters and motivates you to check with multiple lenders before you commit.
Frequently Asked Questions
Does Bankrate's calculator tell me what interest rate I will get?
No. The calculator is a math tool only. You enter the rate yourself based on quotes from lenders. Bankrate offers a separate rate-shopping tool where you can see rates from multiple lenders, but the calculator itself does not look up rates for you.
Can I use this calculator for a used car?
Yes. Enter the purchase price of the used car, your down payment, and the interest rate. Used car loans often carry higher interest rates than new car loans, so make sure you get a rate quote specific to a used vehicle before you calculate.
What if I want to pay extra toward my loan each month?
The calculator shows what you owe if you make only the minimum payment. If you plan to pay extra, your total interest will be lower and you will pay off the loan faster. You can estimate this by running the calculator with a shorter term to see roughly how much you would save.
Is the monthly payment the calculator shows what I will actually pay?
It is close, but not exact. The calculator shows the loan payment only. Your actual bill from the lender may be slightly different depending on how they calculate interest, whether they charge fees, and how your state handles sales tax on financed vehicles. Use the calculator result as an estimate to budget with, then confirm the exact payment with your lender before you sign.
Can I use this calculator for a refinance?
Yes. Enter the remaining balance on your current loan as the "car price," zero as the down payment, the new interest rate, and the new loan term. This shows you what your new payment would be and how much interest you would pay over the new term.